Ipca Laboratories: Buy on dips - HDFC Sec : ValueNotes.com

Ipca Laboratories: Buy on dips - HDFC Sec : ValueNotes.com

Goldman raises gold price forecasts

Goldman Sachs has raised its gold price forecasts citing the fall in US real rates and intensifying sovereign debt issues in both the United States and Europe.
"We expect gold prices to continue to climb in 2011 given the current low level of US real interest rates," the Wall Street bank said in a note to clients on Monday.
The investment bank raised its three-month gold price forecasts to USD 1,645 per troy-ounce, from USD 1,565 per troy-ounce.
It also upped its six-month and 12-month forecasts to USD 1,730 per troy-ounce and USD 1,860 per troy-ounce, respectively.
Goldman also said it recommended initiating a long COMEX December 2011 position.

NEXT WEEK FOR GOLD

Survey Participants Tilted Bullish On Gold Prices Next Week

Friday August 05, 2011 12:37 PM

There is a slightly bullish tilt in sentiment toward gold for the next week among participants in Kitco News’ weekly survey.  The largest bloc  is looking for prices to keep trending higher as traders and investors continue to seek a safe haven amid worries about the global economy and debt levels in the U.S. and Europe.
However, there were also plenty of participants who feel some sort of retracement is likely, particularly after prices ran up to record highs this week.
In the Kitco News Gold Survey, out of 34 participants, 21 responded this week. Of those 21 participants, 10 see prices up over the next week, while seven see prices down and four see prices sideways or unchanged. Market participants include bullion dealers, fund managers, investment banks, futures traders and technical-chart analysts.
Bulls cited some of the same factors that have been fueling the recent rally—rising debt levels in developed nations, a lack of confidence in the dollar and other fiat currencies, plus worries about a soft economy meaning prolonged loose monetary policy. One also cited potential for physical buying to start picking up ahead of the autumn “wedding season” in India.
There is a growing realization that debt in the U.S., Europe and Japan is “out of control” and policy leaders do not know how to deal with it, said Adrian Day, president and chief executive officer of Adrian Day Asset Management. “In the U.S., there is no willingness to make the sort of cuts in spending that would be required, and policy leaders are quite prepared to let the dollar sink,” he said. “If fiat papers are doomed, investors turn increasingly to gold.”

Those who look for near-term weakness cited potential for more selling of gold to meet margin calls and cover losses in other markets, as was reported during a decline from record highs Thursday when equities tumbled. These participants also cited potential for a technical correction in the market, with buyers perhaps hesitant to keep rushing in at the highs without some sort of pullback first.

CALLOPTIONPUTOPTION JULY MONTH PERFORMANCE

Jul-11
DATE	OPTION TYPE	ENTRY	EXIT	PROFIT/LOSS	GAIN IN POINTS
5/7/2011	NIFTY 5600 PE	81	60	LOSS	-21
11/7/2011	NIFTY 5600 PE	72	100	PROFIT	28
12/7/2011	NIFTY 5400 PE	31	48	PROFIT	17
18/07/11	NIFTY 5500 CE	114	114
19/07/11	NIFTY 5600 CE	80	74	LOSS	-6
20/07/11	NIFTY 5600 CE	72	55	LOSS	-17
22/07/11	NIFTY 5600 CE	67	108	PROFIT	41
27/07/11	NIFTY 5500 PE AUG	97	113	PROFIT	16
2/8/2011	NIFTY 5400 PE AUG	70	82	PROFIT	12
3/8/2011	NIFTY 5500 PE AUG	145	160	PROFIT	15
4/8/2011	NIFTY 5300 PE AUG	71	160	PROFIT	89